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Because of XRP's sharp decline, there are worries that it might surpass the one billion payment volume threshold. The recent sell-off has put the asset in a position where further declines could occur. XRP has had difficulty keeping up after a market correction that caused its price to fall below crucial support levels.
Although an attempt at recovery was made, the asset is still encountering resistance close to $2.62, a crucial level that needs to be regained for a long-term recovery. If bullish pressure does not increase, a retest of $2.17 appears likely. A key indicator that frequently marks the end of a bullish phase, the break below the 50 EMA is the most worrisome element. XRP may move further downward toward $1.60, the next significant support level, if it is unable to regain this level.
The decline in XRP's on-chain activity has strengthened the pessimistic narrative. Reduced interest in the asset is indicated by a sharp drop in transaction volume, active wallets and whale accumulation. Due to the absence of significant buying pressure, a recovery may take longer than anticipated.
Yuri MolchanNumerous investors cashed out during the recent decline, according to liquidity metrics, and the lack of a robust recovery phase points to market hesitancy. The loss of momentum may result in additional market corrections, even though XRP is still a significant player in the cryptocurrency space.
For a bullish reversal, XRP must maintain its position above $2.17 and recover the support level of $2.62. In that case, it might target $2.77 and try again at the $3 level. The asset is most likely to decline toward $1.60 if selling pressure continues and it is unable to stabilize above $2.17. With both technical and on-chain indicators displaying bearish signals, XRP is likely to have a difficult future.
Yuri Molchan
Godfrey Benjamin
Dan Burgin
Vladislav Sopov